1. Cross elasticity of demand and impact on revenue

• ExplainCross Elasticity of Demand (XED) and implications of XED on the relationship between two goods. What happens to sales/revenue when the price of the other good changes?
  • Apply this understanding to your analysis ofsugary drinks industry in Singapore. Examine the sales / revenue atfresh fruit juice shopswhen theprice of the sugary drinks changes.
• You should include appropriate research or examples; make relevant assumptions; and use hypothetical numbers to apply to your analysis.
• Use formulas and clearly labelled graph(s) to show the explanation.